Examveda
Examveda

Intrinsic value of put option is

A. exercise price // stock price

B. exercise price - stock price

C. exercise price + stock price

D. exercise price x stock price

Answer: Option B

Solution(By Examveda Team)

Intrinsic value of put option is exercise price - stock price. For an in-the-money put option, the intrinsic value equals the stock option's strike price minus the price of the underlying stock.

This Question Belongs to Management >> International Finance And Treasury

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